ASSET BASED LENDING

Asset-based lending;as●set (as’et-‘bast), n. commonly defined as making loans where collateral substitutes for a partial lack of credit
worthiness.

Asset-based financing is unlike traditional bank loans. Banks can only lend under strict balance sheet, income statements ratios and trend percentages. This is due to restrictions dictated by
Federal and State government regulators. Asset-based financing focuses on the collateral, management, future outlook and other resources available to the company. It provides immediate access
to cash that has been previously tied up in non liquid-assets. This type of financing can provide an overall credit facility or a single line of credit.﻿

Asset based loans are typically secured by the following types of collateral:

Accounts Receivable

Inventories

Machinery and Equipment

Real Estate

Certain Intangibles ﻿

Borrower profiles range from small to middle market sized companies. These include manufacturers, service providers, technology companies, wholesalers and retailers. Companies that are unable to
obtain or are restricted by conventional bank financing

Companies that may benefit from asset-based financing typically face the following challenges: